Xcel Energy has asked the South Dakota Public Utilities Commission to authorize an 8 percent rate increase.
The utility on Monday said the average residential customer will see an increase of $8.50 a month.
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The Minneapolis-based company says the hike was requested to recover the investment it made on the electricity system. The company says 58 percent of the $15.6 million in extra revenue it hopes to obtain will go toward the investment and operating expenses of the Monticello and Prairie Island nuclear generating plants located in Minnesota.
Xcel has nearly 87,000 customers in South Dakota.